INTRA-ISLAND TRADE IN CYPRUS

The research examines the limited scale of trade across the Green Line in Cyprus, identifying a combination of structural obstacles and deep-seated psychological barriers. While trade in goods from north to south grew from EUR 473,631 in 2004 to EUR 4.1 million in 2007, it remains a small fraction of each community's global trade. The authors identify 'denial' among Greek Cypriots and a 'fear of inferiority' among Turkish Cypriots as primary psychological hurdles, often reinforced by political leadership and media. Structural barriers include restrictive EU health requirements, cumbersome transport regulations, and a lack of telecommunications roaming. The report recommends open political encouragement of trade, the creation of a 'Business for Peace' award, and the removal of technical barriers to build trust and economic integration.

• Intra-island economic transactions grew significantly between 2004 and 2007, with total sales across the Green Line reaching an estimated EUR 31.7 million in 2007. When including remittances from Turkish Cypriots working in the south, the total value of intra-island business is estimated at EUR 85.3 million.
• Despite growth, intra-island trade represents a very small portion of the overall trade for both communities. In 2007, Green Line sales to the south accounted for only 7% of the north's total exports to the rest of the world, while sales from the south to the north were only 0.14% of the south's domestically produced exports to the world.
• Greek Cypriots exhibit a dominant psychological barrier of 'denial' regarding trade with Turkish Cypriots, often viewing such dealings as illegitimate or a tacit recognition of the 'pseudo-state'. This manifests as a reluctance to admit to having Turkish Cypriot customers or a refusal to accept advertisements from the north.
• Turkish Cypriots experience a 'fear of inferiority' and a sense of humiliation, particularly regarding the restrictive nature of the Green Line regulation and the experience at crossing points. They often perceive the regulation as a tool for control and dependency rather than a means of economic liberation.
• Structural and regulatory obstacles significantly hinder trade, including EU health requirements that ban dairy and animal products, the lack of mobile phone roaming agreements, and complex taxation rules that can make Greek Cypriot products 45% more expensive in the north.
• Media on both sides of the divide contribute to a hostile environment. Southern media often portray goods from the north as smuggled Turkish products with health risks, while northern media portray the Green Line regulation as a method of maintaining isolation.
• The authors propose several practical measures to reduce barriers, including an annual 'Business for Peace' award, the establishment of a Green Line information hotline, and amending the Green Line regulation to be 'default inclusive' for any Turkish Cypriot products meeting EU health and safety standards.

APA

HATAY, M., MULLEN, F., & KALIMERI, J. (2008). INTRA-ISLAND TRADE IN CYPRUS. Peace Research Institute Oslo. https://cdn.cloud.prio.org/files/1cd0ad02-dba7-47bb-a2fd-9a2d8c229a1d/Paper 2008-2 Intra-island trade.pdf?inline=true

Chicago

HATAY, METE, FIONA MULLEN, and JULIA KALIMERI. INTRA-ISLAND TRADE IN CYPRUS. Peace Research Institute Oslo, 2008. https://cdn.cloud.prio.org/files/1cd0ad02-dba7-47bb-a2fd-9a2d8c229a1d/Paper 2008-2 Intra-island trade.pdf?inline=true.

Wikipedia

{{cite report |last1=HATAY |first1=METE |last2=MULLEN |first2=FIONA |last3=KALIMERI |first3=JULIA |title=INTRA-ISLAND TRADE IN CYPRUS |publisher=Peace Research Institute Oslo |date=2008 |url=https://cdn.cloud.prio.org/files/1cd0ad02-dba7-47bb-a2fd-9a2d8c229a1d/Paper 2008-2 Intra-island trade.pdf?inline=true |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{hatay2008intraisland, author = {HATAY, METE and MULLEN, FIONA and KALIMERI, JULIA}, title = {{INTRA-ISLAND TRADE IN CYPRUS}}, institution = {Peace Research Institute Oslo}, year = {2008}, url = {https://cdn.cloud.prio.org/files/1cd0ad02-dba7-47bb-a2fd-9a2d8c229a1d/Paper 2008-2 Intra-island trade.pdf?inline=true}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }